AUD/USD well bid after Chinese GDP beats expectations
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AUD/USD well bid after Chinese GDP beats expectations

China reported an annualized growth rate of 7.3%, slightly stronger than 7.2% expected and the same as 7.3% in Q3. Other  numbers from Australia’s No. 1 trade partner were also quite solid.

AUD/USD reacted positively, rising nicely from support and stopped only at higher resistance.

Apart from the GDP figure, China also  reported a growth rate of 15.7% in Fixed Asset Investment and more importantly a gain of 7.9% in industrial output y/y. There were worries about the economic giant’s output, and especially its desire for Australian metals.

While the price of copper certainly hurts the  Aussie, these numbers from China are supportive. Is the data real or not? China is a huge country and it reports final GDP figures well  before the US, the UK and Germany report initial estimations.

And is the Chinese government engineering the data to match its political needs? Perhaps, but this doesn’t mean the numbers don’t have an impact on trading.

AUD/USD was trading too close to support at 0.8150 when the pair rebounded quite nicely and eventually hit resistance at 0.8215.

For more, see the AUD/USD forecast.

Here is the chart  showing this reaction:

AUDUSD January 20 2015 rising nicely after solid Chinese growth

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.